The New Oil and Gas Industry Supply Chain Code of Practice

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Presentation on theme: "The New Oil and Gas Industry Supply Chain Code of Practice"— Presentation transcript:

1 The New Oil and Gas Industry Supply Chain Code of PracticeTo be addedADD TITLE AS APPROPRIATE

2 Supply Chain Code of PracticeInitially developed by a work group established by ILT / PILOT under the Progressing Partnership banner (PPWG)The Supply Chain CoP is one of over 10 initiatives launched by PILOT and outlines a set of best practice guidelines First adopted by the industry in 2002, signatories undertake to work towards full compliance with the CodeSignatories include major purchasers (operators and principal contractors) and suppliers (providers of goods and services) The Code is endorsed by PILOT, the Industry Leadership Team and the key Trade AssociationsIn July 2005 the PPWG SCCOP Work Group was disbanded and replaced with a new Supply Chain Steering Group which reports directly to ILT / PILOTTo be added

4 The PILOT 2010 VisionTo make the UKCS the safest place to work in the worldwide oil and gas industryProduction at 3bn BOE per day in 2010UKCS capital investment sustained at £3Bn per annumProlonged self-sufficiency in Oil & GasSupporting up to 100,000 more jobs than there otherwise would have been by 2010A 50% increase in oil and gas exports by 2005£1 billion per annum additional revenue from new businessTo be added

7 The original Code comprised 6 sectionsSupply Chain Code of PracticeThe original Code comprised 6 sectionsCommercial Stage - Forecast/Planning all activity up to the point of tenderCommercial Stage – Tendering all activity up to the point of contract negotiations, including elimination of biddersCommercial Stage - Negotiation agreement of contract termsCommercial Stage - Implementation and review through the life of the contract and at the end of the contractTo be addedCommercial Stage - Monitoring and Evaluation of CodeImplementation and Adoption of the Code… commitment received from 80+ Operators and Major Contractors

8 Code of Practice for Suppliers was developed in 2003Supply Chain Code of PracticeCode of Practice for Suppliers was developed in 2003Stage 1 Forecasting and Planning – To provide more effective business cycle planning.Stage 2 Tendering – To reduce the cost of bidding.Stage 3 Negotiations – Cut waste and reduce unnecessary paperwork.Stage 4 Implementation and Review – Getting the job done right.To be addedStage 5 Monitoring and Evaluation of the Code – Assuring process is in place.… commitment received from 300+ suppliers and contractors

12 Supply Chain Code of PracticePLANCONTRACTPERFORM & PAYCommunication of forward plans to industryProvide support for Share FairsFPAL purchaser profilesSuppliers to make use of information providedTo be added

17 Supply Chain Code of PracticeTemplates are clear, simple and pragmaticFocus is on principle not prescriptionUses industry documents where they existNomenclature is standardModular design gives flexibilityDesigned to allow substitutionTo be added

18 Supply Chain Code of PracticeITT’s are Easier, Faster and Cheaper to issueBids are Easier, Faster and Cheaper to returnSimplifies the contracting processCode recommendations incorporatedCreates a vehicle to introduce better practicesOperators can decide their own scale and pace of adoptionCreates step out opportunities with Well Services, Operational and Construction ITT’sTo be added

19 Supply Chain Code of PracticeModel Rig ITT currently available on FPAL website, is now in use and is easy to access …….To be added